JSE fines Steinhoff R13.5 million for inaccurate reporting – the Citizen

The JSE said in a SENS statement that the accuracy and reliability of financial information published by companies is of vital importance to guarantee a fair, efficient and transparent market.

Issuers have a duty to comply with Listing Requirements designed to ensure that investors and potential investors receive relevant and important information in time to make informed decisions, as well as investor protection and confidence.

Therefore, the JSE has decided to impose a sanction of public censorship and:

• the maximum allowable fine of R7.5 million to Steinhoff as the previously published financial information did not comply with IFRS and was, in the opinion of the JSE, incorrect, false and misleading in material respects;
• a fine of R5 million for failing to disclose the SGI Transaction in SENS at the time and in the financial results for the fifteen months ended September 30, 2016 when it was published.
• a R 1 million fine for failing to disclose, at that time, the SENS Trading Rights Transaction and financial results for the fifteen months ended September 30, 2016 when it was published.

The JSE said that it has considered all relevant facts and information currently available to it in deciding an appropriate censure and financial penalty as a result of Steinhoff’s violations of the Listing Requirements at that time, including:

• Steinhoff’s internal review that discovered accounting irregularities;
• their full cooperation and assistance in the JSE investigation;
• the ongoing restructuring of the Steinhoff Group;
• the administrative penalty imposed on the Company by the FSCA;
• the corrective actions taken by the Board after December 2017 and
• the interests of current shareholders, the JSE and the investing public in general.

In these circumstances, the JSE says that it considers the fine to be appropriate compared to the nature of the violations, circumstances that resulted in the violations, and the interests of Steinhoff shareholders, the JSE, and the investing public. The JSE also emphasized the provisions of section 11 (5) of the Financial Markets Law, which stipulates that the Listing Requirements are binding on companies and their directors.

The investigation continues into the conduct of the people who run the company during the periods in question.

“Steinhoff takes note of the JSE decision, which relates to the period prior to the discovery of accounting irregularities in December 2017. We are pleased that this concludes the JSE process regarding the company,” Louis du Preez, Director Steinhoff International Holdings NV executive and board member said in a SENS announcement.

For more news your way, download The Citizen app to iOS Y Android.